SOVIET BUDGET

Otago Daily Times, Issue 27028, 12 March 1949, Page 7

SOVIET BUDGET

LARGEST IN HISTORY INCREASED ARMED FORCES’ EXPENDITURE NZPA—Copyright Rec. 9 p.m. MOSCOW, Mar. 11. .-■' The Soviet Finance Minister, Mr A. G- Zverev, told the Supreme Soviet of the Soviet Union that Russia plans to spend £3,761,900,000 on her armed forces in 1949. Mr Zverev, speaking in the presence of Mr Stalin and Mr Molotov and other Soviet leaders, announced the largest Budget in Soviet history. It provided for revenue of £21,200,000,000 during the current calendar year and expenditure of £19,700,000,000.

Mr Zverev revealed that actual Soviet spending on the armed forces in 1948 was £3,142,857,000. Mr Zverev said the rise in the armed forces’ expenditures could be attributed to higher wholesale costs due to the abolition of State subsidies. The present armed forces’ Budget figure was a safeguard which would secure the

“ freedom and independence of our country.” Mr Zverev declared that Britain’s military budget was three times the figure of 1938. “ This clearly shows aggressive policies.” He declared that the Soviet's policy for world peace would continue. He blamed America for the troubled international situation and said the United States military expenditure in this year’s budget was 15 times higher than in 1937. He declared that the military appropriation in President Truman’s Budget was 38 _ per cent, military expenditure and with indirect expenditures for military forces it actually consumed over half the United States Budget. Mr Zverev said the largest item of the Budget was £7.420.000,000_ for national economy—including capital construction. agriculture and transport. The Budget allocated £1,524,000.000 for agriculture, largely for increased mechanisation and land reclamation. Appropriations for social and culture enterprises, including education, health and athletics, would be £5.666.000,000. Government aid to industry and transport in the Soviet Union would nearly end this year and in 1950 would end completely. Mr Zverev said the Budget provided £3.761.000.000 for new capital investments compared with £2.380.000.000 in 1948. In addition. Soviet enterprises would provide for investments of £1.190.000.000 out of their own funds. This compared with only £429.000.000 in 1948. Mr Zverev declared that many . construction organisations should use resources more effectively He urced an intensified drive to reduce the cost of production of manufactured goods. Delcpat.es cheered Mr Stalin and Mr Molotov, who sat side by side Both looked fit and well.